Sandy McMurray is a long-time technology journalist whose work has appeared in Time, the Globe & Mail, the Toronto Sun, Report on Business, Profit, and other sources. Between 1995 - 2002, Sandy wrote a weekly column about technology for the Toronto Sun, and served as Technology Editor for five Sun Media newspapers. He has been publishing on the Web since 1996.
When HP and Apple announced a deal to produce an HP-branded iPod, I expected their PR and marketing folks would distribute a product image -- something like the clumsy fake I've produced to go with this item.
That's because I assumed --incorrectly -- that the HP/Apple deal was made some time ago, but kept secret at Macworld so HP could announce it at CES.
Then I read John Markoff's piece in yesterday's New York Times, which states that the deal was completed "after an extensive bargaining session that ran long into Wednesday night."
This Wednesday. Three days ago.
Microsoft and Dell reacted to the HP announcement with surprise and disapproval. No wonder. This undermines Microsoft's audio strategy and creates more competition for Dell's Digital Jukebox device.
Dave Fester, general manager of Microsoft's Windows Digital Media Division, again recited his mantra that Microsoft is all about consumer choice (apparently still not understanding that it makes people laugh when he says that).
A Dell spokesman (unnamed in Markoff's article) suggested that HP was making a mistake, because "customers will want industry standard choices.'' (This neatly ignores the fact that the iPod is the industry standard for music players, and the iTunes Music Store is the industry standard for online music sales, but we'll let that go for a moment.)
The spokesman was probably referring to the Windows Media audio format, which is not supported by the iPod. Apple uses the AAC file format instead of WMA files. AAC was developed by a group that includes Apple, Dolby, Fraunhofer, AT&T, Sony, and Nokia; Windows Media is controlled by Microsoft. Which option do you prefer?
The HP/Apple alliance confirms that the iPod is miles ahead of the competition, not just in terms of hardware but in terms of strategy. Apple is the only company that controls consumer audio hardware, audio software, and an online music store. As John Gruber noted in his reflections on the Dell DJ, only a few companies are even capable of competing with the iPod/iTunes combination.
Sony and Microsoft are the most obvious competitors -- Microsoft has the software and Sony has the hardware -- but neither company has shown much interest so far. "Sony, the gadget-maker, is seemingly beholden to the head-in-the-sand digital music policies of Sony, the record label," notes Gruber.
Microsoft, meanwhile, isn't in the audio hardware business (not yet, anyway). The company's strategy has been to partner with everyone under the sun to push the Windows Media audio format. To quote Gruber again, "Microsoft seems to have little interest in non-rights-managed media formats like MP3 -- and consumers have little interest in rights-managed media formats like WMA."
I'm sure the alliance with Apple was a tough decision for Ms. Fiorina -- if only because it creates new tension with Microsoft -- but it looks like the right choice for HP.
Bravo to Carly for having the 'balls', to not be coerced into 'choosing' MS's 'industry standard solution'. (Crikey! Who died and left BG3 in-charge of the 'industry'?)
Anyway, Carly's/HP's decision IS about choice. Not MS's (one-and-only) choice. But, a DIFFERENT choice.
Posted by MacBuddy on January 11, 2004 11:54 AM | Permalink to CommentActually, there IS a pic of it, albeit not an official PR pic. It is simply a bland greyish blue color instead of white.
Posted by Sam Walker on January 11, 2004 07:05 PM | Permalink to CommentI think Carly was not choosing against MS's "standard" as much as it was responding to the threat of Dell. Dell came out with a me-too product, the DJ and rebranded a music store. HP could have done the same, but it would be me-too, which in this case, means HP is just reponding to Dell, its main competitor, and not getting ahead. By joining forces with Apple, who had its iPod dumped by Dell, when Dell brought out its DJ, it is able to get ahead of Dell at its own game. Now, when consumers who are fixed on getting a PC go shopping, they'll have Dell and HP to choose from, which are barely able to differentiate themselves, except for price. Now, HP will have something Dell will not. The best music store and the best music player. That's what drove Carly into Apple's arms, when it seems that they'll just be reselllers for Apple.
Posted by KenC on January 11, 2004 11:30 PM | Permalink to Comment